Gold: Bearish Channel and Fibonacci
The XAUUSD currently ranges between 61.8% and 38.2% Fibonacci levels. Interestingly, the Average Directional Index (ADX) lines hover below the 20 level, indicating market uncertainty. Despite this, gold continues to trade within the bearish channel. As a result, we can consider the current market trend as bearish.
Given this outlook, we might expect the bears to exert more pressure. This could lead to a continued decline towards the lower band of the bearish flag. However, this scenario would be invalidated if the gold price closes above the 38.2% Fibonacci resistance.
Given this outlook, we might expect the bears to exert more pressure. This could lead to a continued decline towards the lower band of the bearish flag. However, this scenario would be invalidated if the gold price closes above the 38.2% Fibonacci resistance.